Buy Europe to Access Emerging Market Growth

A easing in trade tensions between the US and China is positive for European stocks, which derive a third of their sales from emerging economies

David Brenchley 12 April, 2019 | 3:30PM
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Ferrari, European equities, stock market, emerging market, China GDP growth

Fears over global trade dragged markets down in 2018, but stocks have rallied in the first three monts of 2019 on hopes for an easing of trade tensions between the US and China.

The trade war dragged emerging market stocks, particularly Chinese ones, down lower than most last year, with the MSCI EM Index declining 14.5% in US dollar terms. But it also hit European stocks. The slowdown in global trade combined with country-specific issues to send MSCI Europe down almost 15%. In contrast, the broader MSCI World Index fell by just 8.7%.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
adidas AG274.40 EUR0.00Rating
ASML Holding NV676.30 EUR0.00Rating
Brunner Ord1,030.10 GBP0.99Rating
Compagnie Financiere Richemont SA109.90 CHF0.00Rating
European Assets Ord138.50 GBP0.00Rating
Ferrari NV192.15 EUR0.00Rating
Fidelity China Special Ord327.51 GBP0.46Rating
Kering SA668.80 EUR0.00Rating
Moncler SpA58.80 EUR0.00Rating
Schneider Electric SE144.28 EUR0.00Rating
TB Wise Multi-Asset Growth B Acc459.05 GBP0.44Rating
TB Wise Multi-Asset Income B Inc124.33 GBP0.57Rating
TR European Growth Ord1,465.16 GBP1.05Rating

About Author

David Brenchley

David Brenchley  is a Reporter for